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FlyAway Airlines has regular flights between San Diego and San Francisco. It can treat business and pleasure travelers as separate markets by demanding advance purchase and Saturday night stay-over for pleasure travelers. Suppose that it notes a demand function of Q = 16 - p for business travelers and a demand function of Q = 10 - p for pleasure travelers, and that it has a cost function for all travelers of C(Q) = 10 + (Qp + Qb)^2.
C(Q) refers to the sum of the Q's of the respective passenger groups.
a) How much should it charge in each market to maximize its profit?
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